There used to be a period when banks were known as the go to place for keeping our finances secure but these days, these kinds of financial institutions are imposing all sorts of unfair bank charges to their clients that you may actually wind up spending more than what you are actually saving. This is not to say however, that should do away with bank solutions all together but the the truth is, these institutions use a lot of tricks to get you to spend more of your hard earned cash. The best way to battle these misleading ploys is via awareness. If you are mindful of how banks technique their customers, you will be able to take measures to make sure you are not being fooled with all the bank charges you are paying.
One of the most deceptive tricks that the financial institutions use is the politeness overdraft protection plan. In real meaning, the courtesy overdraft, also referred to as bounced check protection, is designed to provide a client with the necessary cash should this customer create back a check and never have enough money in his accounts to cover the expense. This saves the customers the shame of having deal with the bounced check. Most banks also extend this what they say plan to Automated Teller Machine (ATM) withdrawals or debit card charges.
At the onset, this may seem like an appealing offer.
The bank will be, after all offering to be able to loan you money without asking for security. Additionally, your overdraft restrict can go as high as countless pounds. The thing concerning courtesy overdrafts is you are being charged every time you make a purchase. Some bank charges can reach as high as 30 to 50 pounds for each make certain you issue. In addition, with some banks company is charged daily charges up until the time the borrowed funds is repaid.
Registration in this plan is programmed and banks usually enroll new company accounts. Some banks actually increase the overdraft reduce amount into your account to make it appear you’ve got more money than you actually do. So, you might be actually being charged for a service that you didn’t even know about and did not even would like in the first place.
Credit card rates of interest are lined to the prime interest rate and over the past years, the top interest rate has dropped. Yet, banks are in fact increasing the interest rates they charge on the credit card and this can be known as bank charges for the credit cards.
Add for this confusion over what rates you actually obtain for your credit card. What happens is, customers are hardly ever informed of just how much they will actually be spending money on the interest.